About Vodafone UK

Vodafone UK operations

UK Headquarters Other major office locations

Operations Vodafone UK is one of 16 Vodafone Group operating companies. Vodafone UK’s headquarters are at Newbury, Berkshire. We have nine other main office locations in the UK, including six customer management centres. At the end of March 2006, we had 347 wholly owned retail stores.

Services Vodafone UK provides a range of communication services, including voice calls, text messages, video messaging, internet access, Vodafone live! and other data services, through prepaid and contract pricing arrangements.

Key statistics 2005/06 Vodafone UK Vodafone Group Revenue (£ million) 5,048 29,350 Adjusted operating profit (£ million) 698 9,399 Number of customers (million) 16.3 170.6 Number of employees 11,634 55,110 Number of base stations 11,352 97,899

Consultancy and writing by Context Designed by salterbaxter This product is produced on Revive Special Silk which contains 30% FSC Vodafone and the Vodafone logo, are registered trademarks of certified virgin pulp and 30% recycled and de-inked pulp from post Vodafone Group Plc or its associated companies. consumer waste. This material is FSC certified and is 100% recyclable. © Vodafone Limited 2006 Printed by CTD, an ISO 14001 and FSC certified printer. Vodafone UK Corporate Responsibility Report 2005/06

“What makes Vodafone UK a responsible company?” How do you protect kids from viewing 18-rated content on their mobiles?

see page 09 Are you telling us all the facts on masts and health? Are mobile tracking services an invasion see page 15 of privacy?

see page 09 What are you doing about climate change? What happens to old handsets? see page 18

see page 21 How do you make sure that blind or deaf people aren’t excluded from using mobiles? Feedback We welcome your feedback on this report and our CR performance. Please contact: see page 12 Nicola Woodhead Manager, Corporate Responsibility Vodafone UK The Connection Newbury Berkshire RG14 2FN [email protected] Welcome to the Vodafone UK Corporate About this report

Responsibility (CR) Report 2005/06. This report This report covers Vodafone UK’s corporate responsibility (CR) performance summarises our progress on our key CR issues. in 2005/06. More information and background material is available As well as telling you what we think, we’ve invited on our website: stakeholders to comment on our performance www.vodafone.co.uk/responsibility. Data relates to the year from April 2005 – their responses are included throughout the to March 2006. The report covers all our operations in the UK including UK- report. We welcome all feedback, both positive Based Group employees (12.4% of total and negative. Email [email protected]. employees) unless otherwise stated. We are continually improving our reporting systems and the quality of performance data. This year we have improved data management systems for a number of our key performance indicators including energy, compliance and social investment data.

We commissioned Deloitte & Touche LLP to review our data collection and reporting process for selected key performance indicators in the environment, health and safety and social investment sections At a glance 2005/06 of this report for the year ended 31 March 2006. For further details please see their independent assurance statement on page 28. Extended our content controls This report is intended to supplement the to cover mobile TV and music downloads Vodafone Group Corporate Responsibility Report 2005/06, available at www.vodafone.com/responsibility. Gave £7.82 million to charity

Reduced energy use by 4% and CO2 emissions by 60%

Responded to all enquiries on planning and health within 10 working days

Contents Collected 203,400 handsets 02 Introduction by Nick Read, CEO for recycling and set a target to do more 04 Embedding corporate responsibility 06 Stakeholder engagement Improved our rating against the Hay 08 Responsibility to customers Index 12 Socially significant products Employee Engagement 14 Network rollout, mobile phones, masts and health Made CR one of six criteria used to 18 Environment 20 Supply chain select and monitor suppliers 21 Handset recycling 22 Employees 24 Social investment Provided joint operator network rollout plans 26 Progress against commitments for all local planning authorities 28 Independent assurance 29 Performance and data summary

01 Nick Read Chief Executive Officer Vodafone UK

One of our strategic goals is to be a This report is one of the ways we motivate our employees and attract responsible business. This is easy to communicate. In particular, on page 03, talented people. In the UK’s crowded and say but more challenging to achieve we have answered some of the common competitive telecoms market it gives consistently in an organisation of over questions raised. customers one more reason to choose 11,000 people. Vodafone. By being open and responsive Corporate responsibility is not one we can improve our relationships with A company cannot be responsible simply person’s job. We must engage everyone the stakeholders that can impact on our by donating some of its profits to good at Vodafone UK and make sure they business (such as government, the media, causes. Corporate responsibility (CR) understand and live up to our values. business partners and local communities). means applying our values to all our This is a continuing challenge and one we activities. I believe that our business take seriously. Responsibility must be built My priority for the next year is to focus on already has a positive impact on society in, not bolted on. maintaining the trust of our customers – improving communication and creating and other stakeholders. We will continue jobs and economic growth. But we can By responding to the needs of our to emphasise the support we offer to use our scale and capabilities to do stakeholders and embedding CR values customers to help them control the even more. across our business we will ensure that content they and their family can access Vodafone is known for demonstrating via their mobile. We will strive for ever Identifying what to do and what to leadership and doing the right thing. clearer pricing. We will apply best practice prioritise is not always straightforward in design and consultation during the as people have very different views. We I am pleased to report that we are making rollout of our network. believe in listening to stakeholders outside good progress on our key CR programmes. our business and adjusting to meet their Examples are included throughout this In short we need to do more of what we’re expectations where we can. This helps us report – from our range of products that doing and make sure we involve everyone to identify emerging issues, potential risks make mobiles accessible to people with at Vodafone UK. and new opportunities. hearing or sight impairments, to our efforts to develop our people and our decision I’d like to know what you think. Once you We don’t always agree with what other to buy green electricity. We have have read this report please send us your people tell us and can’t do everything implemented safeguards such as Content feedback to [email protected]. our stakeholders would like us to. We aim Control to protect our customers and are to balance the interests of customers, addressing emerging issues such as privacy. shareholders and employees and to explain our position clearly and transparently. This is good news for our business When you get the balance right, because corporate responsibility is responsibility and profitability are aligned. essential to our success. It can help us Nick Read What are you doing to ensure Vodafone has a reputation

I believe we have a good for being a good reputation but I am not complacent. Regrettably employer? we had to make 640 people redundant this year and worked hard to keep affected employees informed and help them find new jobs. The workplace atmosphere affects productivity and ultimately business success – so it’s in our interests to make Vodafone a good place to work. We must find ways to engage and motivate employees. The right salary is important but only one part of this. Are you doing We have employee experience plans to drive improvements in key areas such as diversity, enough on the development and reward. environment? Climate change and minimising waste are our priorities and we have made good progress this year. We switched to renewable energy, reduced our energy use and continued to recycle over 97% of Why do network waste. But there is more we can do. Our target is to reduce customers further our energy use.

complain about Our customer research does show that some unclear pricing? people find prices for mobile services confusing. We are addressing this by simplifying our pricing structures and billing, for example, by better itemisation on our customer bills and clearer roaming charges with Vodafone Passport. We will continue to review our prices and look for ways to simplify them.

Do you really listen to Is corporate communities that responsibility When planning a base station we try oppose masts? really part of to anticipate possible concerns and select Corporate responsibility Vodafone’s culture sites carefully as this saves time for everyone. isn’t just public relations. Sometimes residents oppose a base station This report demonstrates – or is it just PR? because they are worried about potential health the practical efforts we are effects or how it will look. We do take these making across our business. concerns seriously and spend time listening CR can bring tangible benefits to us and to to local opinion. If possible we adapt our plans, society but only if it is a core part of our culture. for example, by devising a landscaping scheme. Achieving this is not easy – or a task that will If there is another siting option, clearly it’s ever be ‘complete’. I want us to do more to in everyone’s interest to go with the site the ensure every new employee understands our community prefers. The cost and time spent values and to continually remind existing talking to communities is merited because it colleagues of our expectations. gives them the information to make an informed decision about our proposals.

03 Embedding corporate responsibility Being a responsible business is one of our six “Our biggest challenge is to explain what corporate strategic goals. Corporate responsibility helps responsibility at Vodafone means in practice and us achieve our vision to be the world’s mobile how our employees can support our policies Nicola Woodhead in their jobs.” Manager, Corporate communications leader by reducing business Responsibility risk and supporting our reputation with customers, employees, government and other important stakeholders.

Our vision and values Our key issues CR covers a wide range of subjects. Where do we want to be? What do we need to do to get there? What drives us? Through our understanding of our business and our interactions Our vision Our global strategic goals Our values with stakeholders we have To be the world’s mobile • Delight our customers We have four core values, described identified the CR issues that communications leader • Build the best global Vodafone team internally as ‘Passions’. One of our values are most important (material) • Leverage global scale and scope is ‘passion for the world around us’ which for Vodafone UK. These are: Our mission • Expand market boundaries is about helping people lead fuller lives To enrich customers’ lives through • Be a responsible business through the services we provide and the the unique power of mobile • Provide superior shareholder returns impact we have on the world around us. communications For customers For results For our people For the world around us

Being a responsible business is A detailed breakdown of how CR issues e-learning programme on the principles Commitments for 2006/07 about making money in a way that are managed at Group and UK level which 1,100 employees completed minimises our negative impacts and is available on our website: in 2005/06. Update our corporate responsibility maximises the positive benefits of our www.vodafone.co.uk/responsibility. • Employees are encouraged to report website and intranet site by business on people and the planet. any concerns or breaches of our March 2007. To do this we must manage a range In the UK, CR management is embedded policies through a confidential email of issues and ensure all employees in our business functions. We have a CR address and telephone number. Review our induction and training live up to the commitments we have team that provides guidance and co- • Information on CR is published on programmes to make sure they set ourselves. ordinates communication. Policy is set our intranet. This includes detailed cover our CR policies and activities by our CR Policy Committee, which in information on issues such as mobile by March 2007. CR management 2005/06 was chaired by Anna Cloke, phones and health, to help employees CR issues are managed at both the Head of Corporate Communications answer customer questions. Improve our data collection systems Group and operating company level. at Vodafone UK. The CR team meets • CR targets are built into performance in line with Deloitte’s assurance regularly with the Vodafone Group CR dialogues and personal objectives for recommendations by March 2007. Vodafone Group sets Group-wide policies Director and CR managers from other key employees. and encourages consistent standards Vodafone operating companies. • The Vodafone UK Foundation across all Vodafone operating companies. Community Awards help encourage Vodafone Group also manages CR issues We set targets and key performance employees to volunteer their time that affect all operating companies such indicators to help us monitor and improve to charity. as implementing supply chain standards performance. We report our progress to • We run awareness campaigns to with global suppliers. Vodafone Group quarterly. highlight particular CR issues. For example, during World Environment Managers at Vodafone UK implement Embedding CR Day we ran a campaign encouraging Group policies taking into account UK Training and communication help employees to help protect the culture and local stakeholder needs. us to embed corporate responsibility environment at home and at work. For example, setting local pricing across Vodafone UK. For example: structures; planning, building and We assess our progress through regular maintaining our UK network; managing • Our business principles are designed employee surveys. Our survey in March environmental issues and our handset to help employees live our values. 2006 showed that 76% of employees feel recycling scheme; and managing Information on the principles is there are clear opportunities for them employee recruitment, diversity included in the induction process to be socially and environmentally initiatives and health & safety. for all employees. We also have an responsible at work.

04 Reporting Corporate responsibility at This report covers CR performance Vodafone Group and material issues for Vodafone UK These are a few highlights from the Vodafone Group only. We have Corporate Responsibility Report 2005/06: not attempted to duplicate the • Published a study on the potential • Published a summary of major information in the of mobiles to improve healthcare. research studies into mobile Vodafone Group • Set a Group-wide target to reduce phones, masts and health. report. network CO2 emissions by 40% per • Introduced a Group Privacy Policy unit of data transmitted by 2011. and Privacy Steering Group. • Expanded our micro-finance • Worked with others in our industry product trial in Kenya which allows to develop a common approach to users to access banking services measuring and improving supply via their mobile. chain standards.

You can access the full report at www.vodafone.com/responsibility. 05 Stakeholder engagement “Feedback is really important, even when it’s critical. We don’t agree with everything our Stakeholder engagement is an essential part of good stakeholders tell us and we can’t always do what they management. Our interactions with stakeholders want. But listening to other people helps us to make inform our approach to CR and help us identify and better decisions.” prioritise the key issues for our business.

Phil Kirby Director or Regulatory Affairs

We interact with a wide range of NGOs said Vodafone was above average. How we are responding stakeholders in the normal course The figure was 56% for suppliers, 63% of business. This includes customers, for corporate customers, and 50% for These are some of the ways we are responding to stakeholder feedback: employees, investors, suppliers, CR journalists. regulators, local government, community representatives, Brand Health Tracker Responsibility Extended Content Control to include downloadable music residents near our base station sites, Our Brand Health Tracker, which monitors to customers tracks and mobile TV. Simplified our roaming charges with journalists and pressure groups. perceptions of our brand among the public Vodafone Passport. now includes questions on corporate Examples are included throughout this responsibility. The results for 2005/06 Socially Worked with partners to make our products accessible to more report such as: showed that in the UK 19% of respondents significant people with visual or hearing impairments. feel Vodafone is responsible and fair in the products • Our Your Views employee survey way it does business. Ten percent feel that conducted quarterly (page 23). Vodafone behaves responsibly towards the Network rollout Made objective information on radio frequency (RF) and health • Consultation with local communities environment, local communities and all and health available to customers and the public. This report includes more and planning authorities during parts of society. These results are consistent information on agents; temporary masts and visual impact in network deployment (page 16). with the MORI research findings and show response to stakeholder feedback. • Research into public opinion about that we need to do more to communicate mobiles, masts and health (page 17). our efforts on CR to a wider audience. Environment Achieved accreditation to ISO 14001 for our offices and stores (in addition to our headquarters). Recycled over 95% of waste Some engagement is co-ordinated at Opinion leader research from our network. Group level, for example engagement We held two focus groups with CR with investors, see opinion leaders to get feedback on our Climate change Purchased our electricity from renewable sources. www.vodafone.com/responsibility. CR performance and reporting. This was impact the second year we have conducted We also commission research specifically this research. Supply chain Made CR one of six criteria used to select suppliers and monitor on corporate responsibility. their performance. What we found – Most opinion leaders MORI research felt that our CR report was honest Handset Set a target to increase the number of handsets collected We commissioned two general research and addressed the right issues. Most recycling to 250,000. surveys by MORI. The first in summer participants said that the report was 2005 covered consumers, non- let down by a lack of clear, measurable Employees Implemented employee experience plans for each business unit government organisations (NGOs) and targets. Several noted that the report did to drive improvements. CR experts. Twenty-seven percent of the not show a clear link between Vodafone’s consumers questioned said that Vodafone values, business strategy and CR. This takes its responsibilities to society and raised doubts about whether CR is fully Social Donated money and time to support charities directly and through the community seriously. This figure was embedded in our culture. investment the Vodafone UK Foundation. 70% for NGO participants. Strengths – Social investment, people Participants were asked what Vodafone policies and responsibility to customers should do to take its responsibilities more were the highest scoring areas. Many Government problems such as mobile bullying but seriously. The issues mentioned most participants said that Vodafone UK is We meet regularly with politicians and recognised the efforts made on content frequently were: leading the industry on content standards. government officials to discuss issues control. relating to our business. In 2005/06 • Participating in the Home Office taskforce • Improve placement of masts Room for improvement – Network rollout this included: on child protection and the internet to or reduce the number of masts. received a low score even though opinion address issues around child protection • Research into health dangers leaders rated Vodafone UK higher than • Conducting a perceptions audit of 31 and content standards. from masts and handsets. last year, and ahead of our competitors. MPs, peers and civil servants to identify • Working with the National Mobile Phone • Invest in the local community. The main concerns were: the use which CR issues they think Vodafone Crime Unit and the Home Office to • Listen to other people. of agents; temporary masts; visual should focus on. Network rollout and address mobile phone theft. • Be more responsible towards impact; and community engagement. radio frequency (RF) and health was • Regular House of Commons drop-in younger people. Environmental performance was the a key issue for backbench MPs. Other sessions to allow MPs to discuss issues lowest scoring area. Many felt Vodafone issues raised included concerns on adult of importance. The second survey in March 2006 focused UK was not committed to reducing energy content on mobile handsets, spam, • Meeting with officials from the on 50 opinion leaders. Participants were use. Opinion leaders were disappointed mobile phone theft and anti-social Department of Health to discuss the asked how well Vodafone is performing on in Vodafone’s handset recycling figures. behaviour such as ‘happy slapping’. benefits of mobile technology in public social and environmental issues compared Most of the MPs questioned believe service delivery. to other companies. Twentynine percent of A summary of the research findings is the industry could do more to tackle environmental NGOs and 46% of social available on www.vodafone.co.uk/ responsibility. 06 “Good section on networking, good facts on base station sharing and existing structures. Vodafone is taking community consultation more “They are a pretty seriously and I look forward to Vodafone responsible company, doing more on designing countryside- certainly better friendly masts in 2006/07.” than some of their competitors, but they Paul Miner Campaign for Protection of Rural England do have their failings.”

Alan Meyer Mast Action Stakeholder comments This is some of the feedback we received from our opinion leader research. A summary of the research findings is available on www.vodafone.co.uk/responsibility. “There’s no statement of values or principles. But then, what’s the point of having business principles without checking performance against them? The ethical culture of the organisation doesn’t come through.”

Nicole Dando “The report is concise Institute of Business Ethics and factual, not public relations. It includes both negatives and positives.” “All credit to Vodafone

Rosamund Thomas for their effort and Centre for Business and Public Sector Ethics www.ethicscentre.org. commitment in leading the way on content controls.”

Peter Robbins Internet Watch Foundation

“The report needs to set out clearer and more ambitious targets in “Their overall approach some key areas, rather than just stating that Vodafone will set is competent but CR targets going forward.” doesn’t seem to be integrated into the Georgina Stevens WWF UK business.”

Andrew Wilson Ashridge Centre for Business and Society

07 “Vodafone has done a lot to ensure kids can use mobiles safely. They are a leader in this area and react quickly to any concerns. They must remain proactive and respond to future challenges such as the potential misuse of location based services for surveillance.”

John Carr UK Children’s Charities Coalition on Internet Safety

Vodafone UK is committed to making sure children can use mobiles safely.

Content Control is our network bar that prevents children from accessing adult sites on Vodafone live! (our internet portal). It works with our internet filter that blocks access to illegal or 18-rated websites.

We work with others such as the UK Children’s Charities Coalition on Internet Safety to understand and address any risks from new technology and to develop solutions.

We are working with others in our industry to implement safeguards for the use of location based services, see opposite. Responsibility to customers – content and privacy “We want to make sure customers can use our Our customers can now use their mobile to access services safely and securely, especially children. As we launch new products and the internet, download music tracks, watch mobile services we build in advice and safeguards that TV and view 18-rated content such as dating sites, give our customers online gambling and erotica. control.”

Tim Yates Director, Consumer Business Unit

These services are an exciting and Working with others recording the assault. The guide is profitable part of our business but • We use the Internet Watch Foundation’s available on the Vodafone UK and NFPI It is important that we bring important new responsibilities. list of illegal internet sites to strengthen websites (www.nfpi.org), and in our stores. In particular we have developed our internet filter. protect personal privacy tools to help parents protect their • We are working with the Home Office Customer privacy and prevent people being children from online risks and from to produce a kite mark for content Our customers have a right to privacy. tracked without consent viewing adult content. filtering software. This will increase The way we handle their personal customer awareness. information is an important part of Content standards • Vodafone is the leading source of our responsibility to customers. We don’t offer tracking services directly Content Control is our network bar that referrals to the Virtual Global Taskforce, to customers but we do partner with prevents access to 18-rated content on a gateway to information on online We have had a privacy officer for several independent LBS service providers. Vodafone live! (our mobile internet portal). safety and a means to report online years, whose job is to make sure we Our contract with the provider specifies It is in place as the default option on child abuse confidentially: comply with UK data protection law and that the consent of the person being all Vodafone phones. It works with our www.virtualglobaltaskforce.com. protect our customers’ privacy. We don’t tracked must be obtained, including internet filter that blocks access to illegal rent, sell, share or disclose customer children. For personal tracking services or 18-rated websites. Adult customers related information to third parties for the provider obtains consent directly from who want to use 18-rated services can Our internet filter blocks their marketing without permission. the person being tracked. For corporate lift Content Control by proving their age. customers, employee consent must either access to illegal or 18-rated We have to balance our customers’ right be obtained by the LBS provider or by We assess every music track available for websites to privacy with our obligations to comply the employer. download from Vodafone live! Tracks that with requests for personal information are unsuitable for children are placed from law enforcement agencies used in behind Content Control. We work with Information for parents the interests of public safety and security. Commitments for 2006/07 TV production companies to make sure Many parents know less than their Mobile TV programmes are edited children about mobiles and online services. Location based services Ensure that any instances of appropriately or, if they aren’t suitable for This makes it difficult for them to protect Location based services (LBS) enable inappropriate content (including young children, are only shown after 9pm. their children. people to be located via their mobile. images and music downloads) This has many beneficial uses. For example, on Vodafone live! are removed We respond quickly to all complaints We held focus groups with parents and Vodafone’s ‘Find & Seek’ service helps within six hours of coming to and aim to take down inappropriate children to find out more about mobile customers find the nearest essential our attention. content within six hours. We received only bullying. We worked with the National services or entertainment venues. LBS two complaints in 2005/06 which were Family and Parenting Institute (NFPI) to are also used for tracking, for example resolved within six hours of coming to our update ‘A Parent’s Guide to Mobile Phones’. by companies to locate fleet vehicles attention. We report illegal content to the or by parents to track their children. police and illegal sites to the Internet It now includes information on mobile The emergency services also use LBS Watch Foundation. bullying and ‘happy slapping’, the crime when responding to 999 calls. of hitting or mugging someone while

09 “The nature of our business means we travel a lot for work and need to use our mobiles. As a company, everything has to be cost effective. We’ve found that our package from Vodafone including Vodafone Passport gives us the best value.”

Nick Zea-Smith Senior Account Executive, éclat Marketing

Vodafone Passport

It can be expensive to use your mobile abroad and difficult to calculate what the cost of a call will be. éclat Marketing is one of many Vodafone customers who have signed up to Vodafone Passport.

Passport simplifies roaming charges. Customers pay a fixed connection fee of 75p for each call they make while abroad and then the same per minute as they do at home. They can also use their inclusive minutes when abroad.

Vodafone Passport is part of our efforts to make our prices more predictable and easier for customers to understand. Responsibility to customers – pricing and marketing “We know that mobile pricing can be confusing. We have 16 million customers. Maintaining their Our priority is winning the trust of our trust and loyalty to Vodafone relies on more than customers through clear communication – offering the right products and services. particularly on prices.”

Craig Tillotson Strategy and Wholesale Director

We have a responsibility to communicate Premium rate services clearly with our customers so they Vodafone provides several premium rate understand the costs of our services services. For instance customers can sign and can make informed choices. up to receive news on their football team by text message. Third parties also use our Clear pricing network to provide premium rate services Pricing structures for mobiles are sometimes such as ring-tone downloads. complex and confusing. We are simplifying our pricing to help customers keep track It is important that customers, particularly of their spending. children, understand the cost of these services, know whether they will pay We are making customer bills easier to a one-off fee or a regular subscription understand by replacing all acronyms charge and can cancel the service easily. with plain English. Vodafone led the industry in developing a It can be expensive to make mobile calls code of practice for premium rate services. while abroad and the EU is proposing to This has been adapted into the ICSTIS regulate roaming charges. We launched (the industry watchdog) code of practice, Vodafone Passport which enables with which we comply. It requires service customers to take their home tariff and providers to give clear pricing information, inclusive minutes abroad (see case study for example in their advertising and on page 10). through monthly text message reminders. Customers must be able to unsubscribe We also launched the Vodafone Data immediately by texting ‘STOP’. unlimited price plan to make the cost of using the 3G Vodafone Mobile Connect We review the advertising for third party Card (our high-speed internet connection premium rate services and respond to for laptops) more predictable. customer complaints, disconnecting service providers where necessary. Vodafone Passport won ‘Best Roaming Product or Service’ at the 2006 GSM SPAM and mobile scams Association awards. We also won a GSM Unsolicited text messages (SPAM) are award for our ‘Stop the Clock’ television intrusive and sometimes mislead advertisement. customers into calling premium rate numbers. We investigate complaints about Responsible marketing mobile scams and customers can forward Our responsible marketing guidelines suspicious messages to us at 87726 commit us to promoting our products (VSPAM) free of charge. Our Code of and services through advertising that Practice includes best practice guidelines is legal, decent, fair and clear. for mobile marketing.

We track complaints against Vodafone advertising. In 2005/06 the UK Advertising Commitments for 2006/07 Standards Authority (ASA) made one ruling against Vodafone UK advertising, No complaints about Vodafone compared with three in 2004/05. The advertising upheld by the ASA found that we had over-claimed Advertising Standards Authority. the quality of our service.

11 “Talx has revolutionised how I use my mobile. I can now send texts, store numbers, set reminders and see who’s calling before I answer. Vodafone gives you the same software for free, so you pay the same as any other customer – which is brilliant.”

David Halliwell Capita Symonds

David Halliwell, who is blind, uses Talx – our text-to-speech software which we call Speaking Phone.

The screen of a mobile phone displays important information including battery life and network coverage. Yet if you’re blind or partially sighted, much of this information is lost.

Vodafone Speaking Phone solves this problem because it speaks the information displayed on-screen. It makes the whole phone accessible to customers who are blind or visually impaired. For example, by enabling them to send text messages and use the calendar and address book.

Speaking Phone was developed by Vodafone in partnership with the Royal National Institute of the Blind (RNIB). We provide the software for free to Vodafone UK customers who need it. Socially significant products

Part of our commitment to customer “We want everyone to be able to use Vodafone products – service is making sure all potential that’s why we are introducing accessibility features and customers can use and benefit from launching specialist products for people with hearing or Tim Yates visual impairments.” Director, our products. Consumer Business Unit

We are looking for ways to make Working with others – Many accessibility mobile services more accessible and products are developed through Identisafe looks like a normal to develop new products and services partnerships with our customers and with social benefits. suppliers. Here are a few examples from ID badge but has a concealed 2005/06: panic button Accessibility Modern handsets can be complex and • Vodafone and Sky launched Sky Mobile confusing to use. Vodafone Simply is TV in 2005. We are now working with Products with social benefits our range of easy to use handsets for Sky on improving accessibility for the We are using our technology to develop customers who just want to call and partially sighted. For example by enabling new services with social benefits. send texts. The handsets are available customers to ‘read’ their TV electronic from all Vodafone stores. programme guide via their Speaking Our Lone Worker Protection product, Phone. Identicom, is one example. Identicom looks • We worked with handset manufacturers like a normal ID badge but has a discreet We have a range of specialist on keypad design features that make it panic button. It links the user to a 24-hour products for people with easier for visually impaired customers emergency response service which can to differentiate keys. help pinpoint their position using Location visual or hearing impairments • We continued our work with the West Based Services. The emergency call is or limited dexterity Midlands police force to improve monitored and recorded for evidential communication between the police purposes if necessary, and the appropriate and people with hearing difficulties. level of emergency support is provided Our Speaking Phone for the blind and enabling employers to provide a safer visually impaired, is available to contract During 2006/07 we will be working with environment for their employees. and pay-as-you-go customers, see case the Shaw Trust on ways that technology study. Mobile Textphone software enables can help disabled people get back into During 2005/06 we launched Identicom deaf and hearing-impaired customers to work; and with external partners to to both public and private sector make and receive calls in text format, develop the next Mobile Text Phone. companies such as NHS Trusts, financial through a simple, all-in-one device. institutions and risk and security Employee awareness – It is important that management firms. We are also Customers can get information on these employees know about our product range conducting product trials with several products at www.vodafone.co.uk/ so they can give customers the right other customers. specialneeds. Choice (our instore customer advice. magazine) uses easy to spot symbols to During 2006/07 we will be exploring identify handsets with accessibility features. During 2005/06 our special needs possible new uses for the paging network, Our Products and Services Guide for special customer service team received specialist for example to broadcast public service needs customers, is available through our training to help them understand announcements. website, stores and customer contact customer needs and recommend the best centres. accessibility products. The training will be More information on socially beneficial continued and extended during 2006/07. products is available in the Vodafone We formed a Steering Group on Service We are launching an online forum for Group CR Report. Delivery for Disabled and Elderly Customers customer advisers to share information to make sure we are embedding and best practice. accessibility into our products, customer Commitments for 2006/07 service and in our own operations. The Vodafone UK product managers attended group includes representatives from a workshop on inclusive design. Define and prepare a project plan retail, products and services, customer with external partners for the management and property. launch of the next version of Mobile Textphone by March 2007.

13 “In my experience Vodafone is the most responsible and professional of all the operators, in terms of the quality of their planning submissions and their responsiveness. There is room for improvement though – they should provide more accurate rollout plans and do more to check that their agents achieve consistently high standards.”

John Walker Planning, Area Team Leader, Westminster City Council

Responding to feedback

We are committed to meeting best practice.

This year Vodafone and the other mobile operators provided joint network rollout plans to every UK local planning authority (LPA).

These provide data on existing sites and, where possible, envisaged new sites, helping LPAs to update mast registers and anticipate future workloads.

In a follow-up survey of 76 LPAs, 82% said the plans met or exceeded their expectations. Many LPAs requested more detailed or accurate information which we are providing where possible.

We are introducing an accreditation process to ensure agents complete training on our policies.

We regularly audit a sample of agents’ files (including planning applications). We ask for feedback on their performance from LPAs and follow this up with the agent if required. Network rollout, mobile phones, masts and health “We know some people have concerns about masts or the health effects of mobiles. It’s in Our network of radio base stations is essential our interests to reduce these concerns – by communicating to our business – without it our customers’ mobiles openly and giving people the information they need won’t work. to make informed decisions.”

Paul Wybrow Chief Technology Officer

We recognise that some people are Best practice The Ten Commitments concerned about the possible health To address community concerns about effects of mobiles or base stations, network development the mobile network 1 Improved Develop, with other stakeholders, clear standards or the visual impact of masts. operators developed the Ten Commitments consultation with and procedures to deliver significantly improved to Best Siting Practice (in England this is communities consultation with local communities. We take these concerns seriously and now incorporated in the Government’s aim to deploy our network safely and Code of Best Practice on Mobile Phone 2 Detailed Participate in obligatory pre-rollout and pre-application sensitively, and communicate openly with Network Development, see consultation consultation with local planning authorities. stakeholders on health issues and our www.vodafone.co.uk/responsibility). with planners network deployment plans. Vodafone is committed to meeting these requirements. How big is our network? 3 Site sharing Publish clear, transparent and accountable criteria and cross-industry agreement on site sharing, against In 2005/06 we installed 1,515 new In 2004/05 Deloitte & Touche LLP which progress will be published regularly. base stations bringing the total to 11,352 updated their assessment of how the UK’s in March 2006 (compared with 9,837* five mobile operators comply with the Ten in March 2005). Commitments. The review showed that 4 Workshops for Establish professional development workshops on we have continued to make demonstrable councils technological developments within telecommunications for local authority officers and elected members. The number of base stations is likely to improvement in a range of key areas continue to increase as we extend our related to consultation with local planning 3G network. authorities and local communities on base 5 Database of base Deliver, with the Government, a database of information station siting. The review also made a station sites available to the public on radio base stations. We try to minimise the number of sites number of recommendations, including needed by adapting existing sites, sharing that operators work more closely with 6 Compliance with Assess all radio base stations for international (ICNIRP) sites with other operators or locating local planning officers from the start of ICNIRP public compliance for public exposure, and produce a base stations on existing structures the siting process and attend planning exposure levels programme for ICNIRP compliance for all radio base (e.g. rooftops). In 2005/06, 30% of our committee meetings wherever possible guidance stations, as recommended by the Independent Expert sites were shared with other operators. (for more information, refer to Group on Mobile Phones (IEGMP). www.mobilemastinfo.com/planning/ best_practice.htm). 7 ICNIRP certification Provide, as part of planning applications for radio base stations, a certification of compliance with ICNIRP In response, we have revised our policies public exposure guidelines. and procedures including updating our Planning Manual, to incorporate their 8 Prompt responses Provide specific staff resources to respond to recommendations. These changes have to enquiries complaints and enquiries about radio base stations, been clearly communicated to all our within ten working days. site acquisition agents. 9 Support research Begin financially supporting the Government’s into health and independent scientific research programme on mobile mobile phones communications health issues.

10 Standard Develop standard supporting documentation for all documentation planning submissions whether for full planning or for planning prior approval. submissions

* In our last report we incorrectly stated that in March 2005 we had 11,500 base stations. We improved our data collection systems this year and have restated our data for 2004/05.

15 Network rollout, mobile phones, masts and health continued

Information and consultation Visual impact Consultation is an important part of We use a selection of different designs to Green sites Traffic light rating our approach. In 2005/06 we provided help us minimise the visual impact of our • Don’t assume you have a complete network rollout plans for each local sites. Our most commonly used designs picture model for public planning authority (431 in total) and have improved significantly in the last consultation selected other authorities. These are few years; see pictures below. In some Amber sites designed to inform local authorities of locations we use more specialist designs, • These sites can shift to green or red existing base stations and envisaged new for example camouflaged equipment can • Exercise great care in pre-application HIGH base station site requirements in their be used on historic buildings and consultation

area for the coming year, and enable churches. s e u s

them to plan ahead and raise any Red sites s i

y t concerns at an early stage. For the first Agents • These are not ‘no-go’ sites i n u time the plans were prepared jointly During 2005/06 we worked with around • Red does not indicate any health risk m m o by all mobile operators. 20 site acquisition agent companies who • Agree a consultation plan: close liaison c find new sites for our base stations and with the operator’s Community Liaison Seventy-six planning authorities responded complete the planning and acquisition Officer is essential to a follow up survey. This showed that process on our behalf. • Your reputation and that of your LOW 82% felt the information in the plans met client is most at risk LOW planning and environmental issues HIGH or exceeded their expectations. All agents are expected to understand and comply with our policies for responsible network deployment and to attend training. All agents are expected to Our Teamroom extranet has regularly understand and comply with updated resources for agents including guidance on our consultation procedures, our policies for responsible press articles, Vodafone fact sheets and network deployment and position statements, FAQs, and summaries to attend training of the latest research into radio frequency (RF) and health. We are launching an accreditation process to ensure that all When planning a new base station, as agents understand our policies and have a minimum, we write to the local ward completed training. councillor and parish or town council inviting comments before submitting an Our regional planning and environmental application. We make sure the planning specialists, community relations team and officer has a clear point of contact at our EMF Advisory Unit provide guidance Vodafone or with our agent. and support to agents, particularly for more sensitive sites. We determine the level of consultation needed using the traffic light model; Compliance see diagram opposite. For ‘green’ sites, In 2005/06 Vodafone UK received four for example a lattice tower adjacent to a enforcement notices from planning motorway, we focus on local councillors authorities, compared with 25 in 2004/05. and the local planning authority. For ‘red’ In each case, we have worked with the sites, for example an installation proposed local authority to resolve the issue. for an historic town centre, the level of consultation is higher and may include In 2004/05 concerns were raised by drop-in sessions for local residents, some stakeholders in relation to the individual letters to residents or installation of temporary sites during the stakeholder briefings. rollout of our 3G network. We recognise these concerns and try to keep the use of temporary sites to a minimum for special circumstances, and in line with planning regulations.

16 “Our customers rely on our network of base stations to provide them with good coverage. But we must plan new base stations carefully and be sensitive Kevin Milroy to the views of local Director of communities and Regional Operations planning authorities.”

Radio frequency fields Vodafone requires handset manufacturers We aim to address concern about RF We commissioned research into public All Vodafone base stations comply with to test specific absorption rate (SAR) and health by making clear, objective opinion about mobiles, masts and health. International Commission on Non-Ionizing compliance for their handsets when information available to our customers Around 1,000 people took part. This Radiation Protection (ICNIRP) guidelines. used against the head and the body. and the public. For example: showed that RF is not a major top-of-mind In fact our base stations typically have All handsets sold by Vodafone comply health concern, ranked 12th on the list RF field levels of 0.01% to 2% of ICNIRP with ICNIRP guidelines. SAR values are • We publish advice on our website for of unprompted health concerns (the guidelines. provided with each new handset sold customers who wish to reduce exposure top three issues were heart problems, and some manufacturers also publish to RF fields from their handsets. smoking and food quality). But it is still the information on an industry website The guidelines are consistent with an important issue. When prompted 40% How do mobiles www.mmfai.org/public/sar.cfm. WHO advice. of respondents were concerned about • We monitor all enquiries on siting, either phones, masts or both. work? planning and health issues and aim to respond within 10 working days. Most participants (62%) believe there is Mobile phones work on the same principle as television and radio by using • Fact sheets and our ‘Facts about the no conclusive information on this issue. radio frequency (RF) fields to communicate information. A mobile phone Network’ handbook are distributed at But many (43%) believe the industry is network requires a large number of base stations to connect calls to all our stakeholder meetings and by our EMF withholding important information and customers’ handsets. Advisory Unit. 24% believe mobile phones can cause ([email protected]) brain cancer or tumours. Fortynine • Cassiopea, our base station monitoring percent of those aware of a mast siting in Mobile phones and health Current research indicates that exposure project, records RF fields from base their neighbourhood were indifferent about When a person is exposed to a RF field to RF below the limits set by ICNIRP has stations and other sources (such as TV it. Eleven percent were concerned, 7% did it penetrates a few centimetres into the no adverse health effect. But there are body and is absorbed as heat. This is still gaps in scientific knowledge. and radio) in seven locations. The public not react because they felt they could not measured using specific absorption rate can check the combined RF levels in control the situation, 5% formally objected (SAR) values. Vodafone funds independent research their area via the internet 24 hours a to the development and 4% welcomed it into mobile phones, masts and health. day. Cassiopea is run in partnership with for better coverage. The International Commission on We publish a summary of the latest seven councils: Cambridge, Wycombe, Non-Ionising Radiation Protection (ICNIRP) research findings, including studies by Hinckley, Oxford, Portsmouth, Swansea public exposure guidelines set safety the World Health Organisation, on the and Stroud. We surveyed local councillors Commitments for 2006/07 limits for SAR values. Vodafone Group website. in Portsmouth to evaluate the results of the project to date. The results suggest Respond to all enquiries on siting, that councillors find the type of planning and health issues within RF from base stations Exposure to the public from base stations measurements provided by Cassiopea 10 working days. The diagram below shows the pattern of is at very low levels on a continuous basis. useful when commenting on or making radio frequency fields from a typical 15 The maximum level is usually between Accredit agents to ensure they a decision on a planning application for metre base station. 1/50 and 1/10,000 of the ICRNIRP limit comply with our policies on a mobile phone base station. All those depending on factors such as traffic on site selection and consultation, surveyed thought that people who are All of Vodafone’s base stations comply the network or whether the mast is in an and behave in accordance with our concerned about RF emissions should with ICNIRP guidelines in areas where the urban or rural area. ethos and values by March 2008. general public have unrestricted access. look at the Cassiopea results. Larger base stations have exclusion zones See • On request we will commission an Undertake a quantitative survey close to the antennae to protect the www.vodafone.com/responsibility/mpmh independent site survey to establish the of key stakeholder opinion on safety of maintenance workers and for more information. RF levels from a particular base station. prevent public access. Vodafone’s approach to mobile We provide an ICNIRP compliance phones, masts and health and certificate with all planning applications. set targets for improvement by March 2007. Our teamroom extranet includes regularly updated information and FAQs to help employees and agents answer customer 50m 100m 150m 200m 250m questions. The findings from major The pattern of radio frequency Above the ICNIRP limit research studies are summarised and fields from a typical 15 metre radio Under the ICNIRP limit given to agents and other relevant base station Under 1/10th of the ICNIRP limit employees. We ran awareness campaigns Under 1/100th of the ICNIRP limit Under 1/1000th of the ICNIRP limit during 2005/06 to make sure employees know where to find information on mobile We publish a summary of the latest research findings, including studies by the phones, masts and health. World Health Organisation, on the Vodafone Group website: www.vodafone.com/responsibility/mpmh.

17 “Vodafone is one of our largest customers and we’re delighted to be helping it meet its environmental goals by supplying the company with electricity generated from 100% renewable sources.”

John Beddoes Director of Corporate Customers, British Gas Business

We are reducing our climate change impact by purchasing renewable electricity and reducing our energy use.

Our contract with British Gas Business covers 90% of our electricity needs and has helped to reduce our CO2 emissions by 60%. British Gas obtains its renewable energy from a range of sources including biomass, wind energy, landfill and hydro.

We are also working with British Gas to test automated meter reading (AMR) at our base stations to improve data collection. This makes it easier to monitor and compare energy use at different sites and improve energy efficiency.

We tested AMR at 40 sites in 2005/06 and are now exploring options for installing it at new base stations and retrofitting it to existing sites. Environment “We want to contribute towards reducing the UK’s Our business has an impact on the environment carbon dioxide emissions. We’re purchasing electricity from renewable sources through the energy and natural resources we use and have set a target for reducing energy and the waste we generate. We are committed to consumption.” reducing these impacts – this benefits our business by increasing efficiency and reducing costs.

Mike Newens Property Director

Network waste (tonnes) Policy and management Travel – 60% of employees at our offices We improved the recycling system at 3 Our environment policy commits us to in Newbury drove to work on their own our offices in Newbury and Theale, and 974 improve energy efficiency, reduce waste (compared with 60% last year and 63% in recycled 57% of the 714 tonnes of waste and increase reuse and recycling. Energy 2003/04). Around one third of our total produced by these offices compared to and waste reduction targets are included employees are based in Newbury. 40% in 2004/05 and 25% in 2003/04. 9.9 415.6 9.7 in the personal development plans for We have set a target to reduce paper use 295.4 relevant staff. We have initiatives to reduce car usage. at these offices by 15%. As a first step, 34 11.1 7.0 These include our car share intranet all printers in these offices are now set 03/04 04/05 05/06 Our environmental management system ‘Journey2Share’ and interest free commuter to duplex mode as the default option. Disposed Reused for our offices, customer management loans which helped 176 people buy rail We plan to implement recycling systems Recycled centres and retail outlets is accredited to season tickets, scooters or bicycles. at our other offices by March 2007. ISO 14001, the international environmental management standard. We aim to achieve Network – Network upgrades generated Energy use – gas and accreditation for our network in 2006/07. Our CO2 emissions have 312 tonnes of waste, of which 2% was reused and 95% recycled. electricity (GWh) decreased significantly Energy and CO2 13 9 and we expect further 79 66 Energy – We consumed 439 GWh of Compliance 8 103 113 gas and electricity in 2005/06, a decrease reductions next year There were no environmental prosecutions 35 of 4% on last year. We implemented a or fines. The Environment Agency is 99 261 251 Utilities Management Policy to ensure investigating a diesel spill from a 176 we take a consistent approach to energy CO2 – In October we entered a new generator at one of our base stations. management across the business. electricity supply contract with British Gas to buy electricity from renewable sources. 03/04 04/05 05/06 Network – Most energy, approximately This means our CO2 emissions from Commitments for 2006/07 Retail Other network Offices Base stations 83%, is consumed by our network. energy use have decreased by 60% and A significant portion of this is used for we expect further reductions next year. Reduce the energy consumption of cooling equipment in base stations. We our current network infrastructure, have installed Savawatt power controls Waste offices and stores by 12.5% against 2005/06 levels by March 2009. CO2 emissions from business on the air conditioning units at 2,000 Three types of waste are significant for travel (thousand tonnes) base stations. This reduces energy used Vodafone UK – old handsets (page 21), Maintain reuse or recycling rates 6.8 for cooling by around 14% at each site. waste from offices and stores (such as for network waste at or above 97%. paper, plastic and packaging), and network 1.4 1.2 During 2006/07 we will test fan cooling waste (including some hazardous waste 10.3 10.9 10.3 Recycle at least 60% of waste (by as a replacement for air conditioning. such as back-up batteries). weight) from our Newbury and This can reduce energy used for Theale offices by March 2007. cooling by up to 77% per base station. Office and retail – We agreed a national Air-conditioning accounts for 25% waste management contract for all offices Reduce paper use at our Newbury 03/04 04/05 05/06 of total energy use per site so this and stores which will make it easier to and Theale offices by 15% by Air travel Road travel is a significant saving. manage waste and increase recycling. March 2007.

We tested automated electricity meter Achieve certification to ISO 14001 reading (AMR) at 40 base stations (see for our whole UK business, including CO2 emissions – network, case study on page 18). our network by March 2007. offices and retail (thousand tonnes) 5.4 3.9 Run internal awareness campaigns 29.4 28.4 42.7 on recycling and reducing energy 3.6 43.8 48.6 15.3 use by March 2007. 42.7 112.1 1.2 107.7 4.2 76.1 0.6 69.4

03/04 04/05 05/06 Retail Other network Offices Base stations

19 Supply chain In 2005/06, Vodafone UK spent £1.9 billion “In a global economy the products we use and sell come from all over the on goods and services from approximately world. We want our suppliers, wherever they 2,000 suppliers. are, to meet high standards Rob Lees on the environment and Head of Supply Chain human rights.” Management

In a large supply chain there is a Progress in 2005/06 We carried out detailed assessments We held a CR conference with other risk that some suppliers may not All potential new suppliers and our existing with our five largest suppliers, including Vodafone local operating companies meet acceptable environmental suppliers with a contract over £1 million self-assessments, a briefing on the to discuss how to influence the CR and labour standards. We use our (representing 70% of our supplier spend) requirements of our CEP and some performance of second and third tier influence to improve standards completed self-assessments. site visits. These are all well known suppliers with whom we have no in our supply chain. multinational companies, mostly with direct relationship. extensive CR programmes of their own. We focus on higher risk suppliers and those CR is one of six criteria used Looking forward with whom we deal directly. Our criteria Employee awareness In 2006/07 we will implement an online for determining CR risk include the size to select suppliers and We are committed to making corporate supplier assessment and qualification of the supplier, the location of their monitor their performance responsibility an integrated part of our process. We will agree continuous operations and the type of product or supply chain management processes. improvement plans with our largest service they supply. We seek to influence suppliers. This will help us to be more our suppliers to develop and maintain CR We identified one higher risk supplier In 2005/06 all Vodafone UK procurement proactive and focus on helping suppliers programmes for their own supply chains. who provides promotional items used in employees completed online CR training. implement CR initiatives. Vodafone marketing. A team from Vodafone This explained the background to our Engagement with suppliers of handsets, conducted a detailed assessment with CEP, the importance of implementing network and IT equipment is typically this supplier to assess environmental and high labour and environmental standards Commitments for 2006/07 managed at Group level. See the Vodafone labour standards in their supply chain. in the supply chain and the responsibilities Group Corporate Responsibility Report, This involved an audit of their supplier’s of purchasing managers. Establish a whistle-blowing www.vodafone.com/responsibility. factory in China which manufactures mechanism for suppliers to report most of their products. The audit did not CR objectives and implementation of our any concerns or breaches of our Our Code of Ethical Purchasing identify major issues of concern. We made CEP are included in the individual and Code of Ethical Purchasing. Our Code of Ethical Purchasing (CEP) five recommendations to the supplier to team objectives for all procurement staff. Implement an online supplier sets out the labour and environmental strengthen their Code of Ethical Purchasing, assessment and qualification standards that we expect suppliers to factory auditing process and reviews of process. meet. Compliance with our CEP is a sub-contractors. contractual requirement for all Vodafone UK suppliers.

Supplier performance management In 2005/06 we established our Supplier Performance Management (SPM) programme which makes CR one of six criteria used to select suppliers and monitor their performance. The other criteria are financial, technology, commercial, delivery and quality.

SPM includes pre-assessments for new suppliers with a contract value over £50,000, a risk-assessment carried out Handsets 38.1% before a company becomes a Vodafone Network infrastructure 20.1% supplier. Our top 40 suppliers (by spend) IT 14.2% are re-assessed every six months and Marketing services 4.75% improvement plans agreed where necessary. No major CR risks were Property/facilities 1.58% identified in 2005/06. Customer management 1.45% Human resources 1.42% These assessments help us to determine (including outsourcing) higher risk suppliers with whom we need Fleet 0.94% to engage more closely. Other 17.46%

20 Handset recycling “Old handsets are valuable and can be reused and Consumers upgrade their mobile handset frequently recycled. We need to make sure our customers know we want their old – on average every 18 months. Handsets that are handsets and will put thrown away generate waste and can release harmful them to good use.” substances into the environment if they aren’t disposed of correctly. Chris Edwards Head of Device Management

Handsets returned by customers Handset reuse and recycling benefits Performance in 2005/06 We conducted research into the barriers (thousands) the environment, charities and people In 2005/06, we collected 203,400 to handset recycling. This showed that

203.4 in low income countries. handsets, up from 141,000 the previous many people keep their old phone as a year. During the year 28.6 tonnes of spare or to give to a friend or relative. 163.5 154.6 141.0 Our approach handsets were refurbished for reuse and People are more likely to hand in their We collect old handsets from customers 36.5 tonnes were recycled. £578,000 phones if they know it is going to a good at our stores and via our FREEPOST was generated for the NAS. cause or will support a charity. Vodafone address. These are sent to Fonebak, the European-wide handset Plans for 2006/07 02/03 03/04 04/05 05/06 recycling programme, for refurbishment All profits from our handset We are planning a number of initiatives or recycling. to encourage people to hand in their recycling are donated to the phones, including: Processing of handsets, batteries We give £10 – £20 for each phone National Autistic Society and accessories (tonnes) (depending on its resale value) that is • A phone amnesty and ‘My Ideas’ 93 collected from our retail customers. suggestion scheme to encourage Customers can donate this money to We worked to raise consumer awareness employees to return old handsets 72 the National Autistic Society (NAS). of our return programme by improving the and suggest ways of increasing collection bins in our stores and through the number of handsets collected. 37 Many handsets that are returned are an advertising campaign with the (NAS). • Working with our suppliers to 12 37 29 in good condition and are refurbished We worked with our corporate customers encourage recycling. 24 19 for resale in lower income countries. to increase handset returns. Twenty three • A phone recycling campaign in 02/03 03/04 04/05 05/06 A refurbished handset costs less than of our top 50 corporate customers our retail stores. Recycled Reused a new phone helping more people in (measured by number of accounts) now Africa, Asia and Eastern Europe enjoy the have Fonebak schemes in place and we social and economic benefits of mobiles. are on track to reach our target of 35 by Commitments for 2006/07 Handsets that can’t be reused are recycled. March 2007. We donate all profits to the NAS. Collect 250,000 handsets during However, the number of handsets we 2006/07. Our involvement in the Fonebak collected is equivalent to a very small Encourage 35 of our top 50 programme will help us ensure we are proportion (3%) of the new handsets corporate customers to participate in compliance with the Waste Electrical we sold. We want to increase this figure in Fonebak by March 2007. and Electronic Equiment (WEEE) Directive and have set a target to collect 250,000 when it comes into force. handsets during 2006/07.

21 “I’ve worked for Vodafone for 12 years and always tried to be an ambassador for the company. To be recognised in this way by my colleagues makes it even more worthwhile.”

Sue Parker Vodafone Legend

Sue Parker, Divisional Head, Vodafone Retail is an official Vodafone Legend. She was nominated for the award by her colleagues for her inspirational leadership and commitment to helping others.

Sue is a champion for corporate responsibility and Vodafone’s community work. She has encouraged colleagues, suppliers and customers to get involved and raise thousands of pounds for charities such as Children in Need, Jeans for Genes Day, Comic Relief, the tsunami disaster appeal and the National Autistic Society. Sue’s passion was instrumental in Vodafone Retail winning the Thames Valley Business Award for Corporate Social Responsibility.

The Legends programme recognises Vodafone people who have made outstanding contributions. One hundred employees were rewarded in 2005/06 and won a trip to Dubai with their guest. Employees “Generally we find that people are very motivated to work for Vodafone. But we Vodafone UK has 11,600 employees. We work hard don’t take this for granted. Our employment policies to create a workplace where employees can thrive and reward packages help us to maintain their and succeed. This is vital to our business success loyalty in the because creating the right employee experience long-term.” motivates our people to deliver the best service to our customers. Matthew Brearley Director, Human Resources

Gender diversity – management Employee experience framework Employee engagement and communication and all employees (%) Each business unit has developed an We measure employee perceptions quarterly through the Your Views survey and

74 57 70 55 employee experience plan to drive conduct a full employee survey every two years. improvements.

We improved our rating against the Hay These are some of the Your Views results from March 2006 Your Views survey March 43 45 Employee Engagement Index to 71.4% (completed by around 2,100 employees): 2006 (% 30 favourable) 26 in March 2006, compared with 68% the previous year. Our target is to be ranked 04/05 04/05 05/06 05/06 in the top 25% of UK companies in the My line manager treats my team fairly and without discrimination 82 Men (all employees) Men (managers) Index by March 2007. Based on the most Women (all employees) Women (managers) recent Index scores, this means we need My manager takes a genuine interest in my well-being 79 to achieve a rating of 75.6%. Vodafone came 13th in the 2006 Sunday Times 20 Rate your team on managing change and the introduction of new ways 74 Accident incidence rate Best Big Companies to Work For Awards. of working (per 1,000 employees)

1.8 Diversity 1.7 1.72 The training and development I receive enables me to perform effectively 59 1.5 Workforce diversity supports innovation 1.42 in my current role and creativity. Our equal opportunities policy commits us to treat all employees Rate the career opportunities available to you within Vodafone UK 41 fairly and without discrimination.

Employees can report any concerns to 01 02 03 04 05 their line manager or anonymously via our Learning, development and careers Vodafone Group’s AllShares, Sharesave independently managed phone service. Performance Dialogue is our annual and Share Incentive Plans ensure all appraisal process. In 2005/06, 100% employees have the opportunity to own We do not have complete data on ethnicity of employees confirmed they had a shares in the company. but estimate around 9% of employees are performance review and development from ethnic minorities. 35% of employees discussion with their manager. Change and redundancies did not state their ethnicity. We closed two contact centres at Brindley We spent over £5 million on training. We Place and Woodlands resulting in 640 We are developing a three-year strategy to are launching Training Academies, a one- redundancies. We set up Career Centres at promote ethnic, gender and age diversity. stop shop for all learning and career both sites to help affected employees find development needs for each business new jobs within Vodafone or elsewhere. Health, safety and well-being function. Half of our employees now have Nearly 170 of those employees affected Our health and safety policy covers all access to an Academy. A Leadership found new jobs at Vodafone. relevant risks from driving and working Academy for managers was launched in at height to ergonomics for office April 2006. Work from the centres has been distributed based employees. amongst other Vodafone contact centres We improved our careers intranet site and those run by our outsourcing We launched several well-being initiatives and met our target to fill 70% of our partners. We work with five outsourcing including: vacancies internally. partners who run UK contact centres employing 3.5 million people. We started • Wellness Checkpoint – an online Recognition and reward working with a contact centre in India that health assessment tool used by a third Offering the right rewards helps us will handle customer email enquiries. of employees during the year. to attract, retain and motivate the best • Quit smoking clinics which helped 70 people. The compensation package for employees give up. all employees includes an element of Commitments for 2006/07 • Occupational Health case management performance related pay which is linked was tested in two contact centres and to individual and business goals. Be ranked in the top 25% of UK helped reduce long-term sickness companies in the Hay Employee absence. We launched the Vodafone Legend Engagement Index by July 2007. Awards to recognise 100 employees who Nearly 25% of our employees work have achieved outstanding things. This flexibly, part-time, or from home. culminated in an all expenses paid trip to Dubai for the winners and their chosen guest.

23 “Our relationship with The Vodafone UK Foundation is worth more than money. The opportunity to learn from their business expertise and share ideas with other charities is helping YouthNet support even more young people.”

Sarah Hooker YouthNet

askTheSite – a successful partnership between YouthNet and The Vodafone UK Foundation

askTheSite is an online Q&A service created by YouthNet with support from The Vodafone UK Foundation. It is part of TheSite.org, YouthNet’s website for 16–24 year olds and enables young people to get advice in confidence.

In its first year askTheSite answered over 4,200 questions from young people, giving them guidance and support. A further 32,000 visit askTheSite’s archive every month to read and learn from previously answered questions.

YouthNet’s relationship with The Vodafone UK Foundation is part of a larger three year four-way partnership with Shelter and the Samaritans. This is based on an open-book policy with all organisations sharing research, expertise and results.

Vodafone employees also give a range of voluntary support to YouthNet. Social investment “We believe in sharing some of our success with charities and communities near our We donate money, products and services to sites. This enables charities to continue their important good causes, and encourage our employees work and helps make Vodafone a nicer place to give their time to charity. Much of our for our people to work.” support is given through The Vodafone UK Foundation which focuses on charities that help young people aged 16–25. Sarah Shillito Manager, Vodafone UK Foundation

Our approach Between 2004 and 2007 the Foundation Employee involvement Social investment should be about more will donate £6 million to three partner Many Vodafone UK employees volunteer than a simple donation. We focus much charities: Shelter, Samaritans and YouthNet. in their local community, give from their of our funding on a small number of We are working closely with these charities, pay and organise fundraising events. charities, where we can make the most sharing our technology and marketing In 2005/06, employees gave £239,703 difference. We share our business and expertise. The charities are also working through payroll giving. Vodafone UK was marketing expertise to help our partner together, sharing skills and resources. awarded a silver Payroll Giving Quality charities better understand the corporate Mark from the Institute of Fundraising. sector and create stronger, more tailored fundraising applications. This helps Between 2004 and 2007 The Vodafone UK Foundation matches them to sustain their projects for the the Foundation will donate employee fundraising (up to £500) for long-term, well after our financial support their chosen charity, and every penny has come to an end. £6 million to three partner raised for its flagship charities. In 2005/06, charities: Shelter, employees raised £1.2 million through In 2005/06, we gave £7.82 million to Samaritans and YouthNet. 925 events. The Foundation gave charity, over £5.39 million of which was £842,000 in matched funding. given through The Vodafone UK Foundation. These are some of the ways the charities All employees can take 24 hours’ time benefited in 2005/06: off each year to volunteer for charity. The National Autistic Society In 2005/06, our employees gave 1,777 It was the second year of our three year hours as volunteers. partnership with the National Autistic Society (NAS). Employees and customers We are supporting Samaritans to engage We recognise Vodafone employee raised or donated £230,000 for the charity more young people via email and volunteers and fundraisers through our and £578,000 was generated through our continued to fund a nationwide campaign UK Foundation Community Awards. All handset recycling scheme: (see page 21). to raise awareness of [email protected]. eligible employees receive a £50 donation Samaritans received 154,000 emails (an for their chosen charity. Our funding helped the NAS conduct the 18% increase from the year before), 172 first National Survey on Autism to find out branches are now online and 770 new more about perceptions of autism and volunteers were trained in offering Commitments for 2006/07 raise awareness of its work. We ran an emotional support by email. advertising campaign with the NAS to Increase the balance of funding increase understanding of autism and to local community projects encourage people to raise money by near Vodafone sites outside returning their old handsets. We are helping Shelter to reduce youth West Berkshire (where we are homelessness and housing problems. In headquartered) from 40% to 50% We helped the NAS hold a Day for Autism 2005/06, Shelter launched ‘Know your by March 2007. in London’s Leicester Square and added rights’, a campaign to advise young people Launch the application process for a link to the online autism resource on the housing problems they face. our new flagship charity partnership www.info.autism.org.uk on Vodafone live! Following the ‘Know your rights’ tour, a by March 2007. phone poll showed 98% of young people who sought advice via the ‘Know your rights’ Announce three new flagship We ran an advertising website pages had solved their problems. charity partners by March 2008. campaign with the National Autistic Society to increase understanding of autism YouthNet runs TheSite.org, a website providing free and confidential The Vodafone UK Foundation information and advice for young people, Our Foundation supports national charities 24 hours a day, seven days a week. working with young people, local Over 400,000 16–24 year olds visit organisations near Vodafone sites and TheSite.org every month; and YouthNet charities for which our employees have is now launching new services to chosen to fundraise. support more young people through their mobile phones.

25 Progress against commitments

KEY: Achieved— Not yet achieved

Issue Commitment 2005/06 Progress New commitments Deadline

Embedding CR — — Update our Corporate Responsibility March website and intranet site. 2007

Review our induction and training March programmes to make sure they cover our 2007 CR policies and activities. CR policies and activities. Improve our data collection systems in line March with Deloitte’s assurance recommendations 2008 (refer to www.vodafone.co.uk/responsibility).

Customers Work with the National Family and Parenting Worked with the NFPI to update ‘A Parent’s Guide Ensure that any instances of inappropriate March Institute (NFPI) to raise awareness among parents to Mobile Phones’. It now includes information content (including images and music 2007 about helping their children use mobiles safely on mobile bullying. downloads) on Vodafone live! are removed by March 2006. within six hours of coming to our attention.

Ensure that any instances of inappropriate content We met this target in 2005/06. No complaints about Vodafone advertising March (including images) on Vodafone live! are removed upheld by the Advertising Standards Authority. 2007 within 24 hours of coming to our attention.

Review our pricing plans to ensure these are We made customer bills easier to understand clear and easy for customers to understand by replacing all acronyms with plain English. Ongoing by March 2006. We launched Vodafone Passport to simplify roaming charges. We are continuing to look for ways to make our prices clearer.

Socially significant Establish an internal cross-functional Steering Cross-functional Steering Group on Service Define and prepare a project plan with external March products Group to ensure we meet the provisions laid Delivery for Disabled and Elderly Customers partners for the launch of the next version of 2007 out in the Mobile Industry Good Practice Guide set up. Mobile Textphone. for Service Delivery for Disabled and Elderly Customers in the UK by March 2006.

Continue to work with handset manufacturers Worked with handset manufacturers to design and NGOs on improving accessibility. more accessible key pads. Continued our work Ongoing to improve communication between the police and people with hearing difficulties. Update our Products and Services Guide, available We are updating our Products and Services — in stores and from our customer management Guide for special needs customers. centres, to increase awareness of our products for customers with special needs by March 2006.

Network rollout, Continue to engage directly with the public, Commissioned research among 1,000 members Respond to all enquiries on siting, planning March mobile phones, customers, key opinion formers and employees of the public about mobiles, masts and health. Ongoing and health issues within 10 working days. 2007 masts and health on mobile phones, masts and health. Ran awareness campaigns to make sure employees know where to find information on RF and health. Accredit agents to ensure they comply with our March Surveyed local councillors in Portsmouth to policies on site selection and consultation, and 2008 evaluate the results of Cassiopea, our base station behave in accordance with our ethos and values. monitoring project. Undertake a quantitative survey of key March Continue to provide advice to customers who wish Published advice on our website for customers stakeholder opinion on Vodafone’s approach 2007 to reduce exposure to RF fields from handsets. who wish to reduce exposure to RF fields from Ongoing to mobile phones, masts and health and set their handsets. The guidelines are consistent with targets for improvement. WHO advice.

Continue to take people’s concerns seriously in Continued to strive for best practice and to comply relation to network deployment. with the Ten Commitments. Ongoing

Continue to respond openly and transparently to Communicated openly with stakeholders on stakeholders’ questions and concerns. health issues and our network deployment plans. Ongoing

Continue to work with local planning authorities Provided network rollout plans for each local and other stakeholders to find mutually planning authority in the UK (431 in total). Ongoing acceptable solutions.

Environment Implement our new Utilities Management Policy Utilities Management Policy implemented. Reduce the energy consumption of our current March throughout the company by March 2006. network infrastructure, offices and stores by 2009 12.5% against 2005/06 levels.

Implement a national waste contract for our retail National waste contract for all our offices and Maintain reuse or recycling rates for network March stores by 2006. stores agreed. waste at or above 97%. 2007

26 Issue Commitment 2005/06 Progress New commitments Deadline

Environment Implement recycling programmes at all our Relaunched recycling schemes at our Newbury — Recycle at least 60% of waste (by weight) March (continued) UK offices by March 2006. and Theale offices. We expect to have implemented from our Newbury and Theale offices. 2007 recycling programmes at our other offices by September 2006. Reduce paper use at our Newbury and Theale March offices by 15%. 2007 Develop a waste reduction strategy by Developed a strategy and planned March 2006. communications to increase employee Achieve certification to ISO 14001 for our March awareness of recycling. whole UK business, including our network. 2007

Achieve certification to ISO 14001 for our whole UK Environmental management system for offices, Due Run internal awareness campaigns on March business, including our network, by March 2007. customer management centres and retail March 2007 recycling and reducing energy use. 2007 outlets accredited to ISO 14001.

Implement STARK, a utilities management database, STARK implemented. to monitor energy use at our sites and target inefficient sites for improvement by March 2007.

Run internal awareness campaigns on recycling Awareness campaigns are planned Due and reducing energy use by March 2007. for 2006/07. March 2007

Supply chain Deliver CR supply chain training to 80% of supply 100% of supply chain personnel received Establish a whistle-blowing mechanism for March chain personnel by March 2006. CR supply chain training. suppliers to report any concerns or breaches 2007 of our Code of Ethical Purchasing.

Complete detailed CR evaluations with five Completed detailed CR evaluations with Implement an online supplier assessment March suppliers based on risk by March 2006. six suppliers. and qualification process for suppliers. 2007

Adopt a risk-based approach to all new suppliers to Suppliers complete self-assessments as part of Vodafone UK by March 2006. our supplier performance management programme. This enables us to identify higher risk suppliers for further engagement.

Handset recycling Set a target for increasing the number of redundant Target set to collect 250,000 handsets Collect 250,000 handsets during March handsets collected from customers. during 2006/07. 2006/07. 2007

Encourage 35 of our top 50 corporate customers 23 of our top 50 corporate customers have Due Encourage 35 of our top 50 corporate March to participate in Fonebak by March 2007. Fonebak schemes in place. March 2007 customers to participate in Fonebak. 2007

Employees Extend training academies to cover 50% of our Over 50% of employees now have access to Be ranked in the top 25% of UK companies July employee population by March 2006. a training academy. in the Hay Employee Engagement Index. 2007

Measure and review employee engagement trends Employee engagement trends measured quarterly by March 2006. and reviewed quarterly through the Your Views survey.

Fill 70% of all job vacancies internally by 70% of all job vacancies filled internally. March 2006.

Establish Vodafone Legends Awards to recognise Vodafone Legend Awards launched. outstanding employee achievements by March 2006.

Establish Employee Experience Plans for every Employee Experience Plans established in all business unit by March 2006. business units.

Be ranked in the top 25% of UK companies We improved our rating against the Hay Due in the Hay Employee Engagement Index by Employee Engagement Index and are on July 2007 July 2007. track to meet our target by July 2007.

Social investment Establish a network of like-minded companies We have started to work with other companies Increase the balance of funding to local March to develop and share best practice on social to develop and share best practice on Ongoing community projects near Vodafone sites 2007 investment by March 2006. Initially this will focus social investment. outside West Berkshire (where we are on innovation, employee engagement, project and headquartered) from 40 to 50%. programme measurement. Launch the application process for our new March Encourage employees and customers to donate Employees and customers raised or donated — flagship charity partnership. 2007 £1 million to the National Autistic Society (NAS) £230,000 for the NAS and £578,000 was by March 2006. generated through our handset recycling scheme. Announce three new flagship charity March partners. 2008 Increase awareness of the NAS partnership and Ran an advertising campaign with the NAS to increase expand programme activities by March 2006. understanding of autism and encourage people to raise money by returning their old handsets. Helped the NAS hold a Day for Autism in London’s Leicester Square. Added a link to the online autism resource www.info.autism.org.uk on Vodafone live!.

27 Independent assurance We commissioned Deloitte & Touche LLP to review our data collection and reporting process for selected data in the environment, health & safety and social investment sections of this report (indicated by ◊), for the year ended 31 March 2006. In addition, and without affecting their assurance conclusions, Deloitte made several recommendations for continuing to improve the collection, validation and reporting of these data. The recommendations are included on our website www.vodafone.co.uk/responsibility.

Assurance procedures Deloitte’s responsibilities, independence • This standard requires that we review and team competencies the systems, processes and controls that • Our responsibility is to independently Independent assurance statement deliver the selected performance data. express conclusions on the reliability of by Deloitte & Touche LLP (‘Deloitte’) • Our work consisted primarily of making management’s assertions on selected to Vodafone Ltd on the 2005/06 inquiries of company personnel and subject matters as defined within the Corporate Responsibility Report carrying out analytical procedures and scope of work above. (‘CR report’). sample tests as follows: • Our multi-disciplinary team of CR – Understanding, analysing and testing and assurance specialists performed on a sample basis the collation, the engagement in accordance with What we looked at: scope of our work aggregation, validation and reporting Deloitte’s independence policies, which of the selected performance data; and cover all of the requirements of the Vodafone Ltd (‘Vodafone UK’) have – Reading and analysing the content of International Federation of Accountants engaged us to give limited assurance the report against the findings of our (IFAC) Code of Ethics and in some areas as to whether the environmental, social work, industry Corporate Responsibility are more restrictive. We have confirmed investment and occupational health & practices and other relevant to Vodafone UK that we have safety performance data described within information and, as necessary, making maintained our independence and the report indicated by the following recommendations for improvement. objectivity throughout the year, symbol ◊ are not materially misstated. • The limited assurance procedures including the fact that there were no engagement excludes procedures events or prohibited services provided such as testing of source data and which could impair that independence What we found: our conclusions is substantially less in scope than a and objectivity. reasonable assurance* engagement. • This statement is made solely to Based on the work we performed, we Accordingly we do not provide Vodafone UK in accordance with our are not aware of anything that causes us reasonable assurance on those letter of engagement for the purpose to believe that the environmental, social matters specified in this statement. of the directors’ governance and investment and occupational health & stewardship. Our work has been safety performance data described within undertaken so that we might state the report indicated by the following Responsibilities of directors and to Vodafone UK those matters we symbol ◊ are materially misstated. independent assurance providers are required to state to them in this statement and for no other purpose. Vodafone UK’s responsibilities To the fullest extent permitted by What we did: assurance process and • The directors are responsible for the law, we do not accept or assume standards preparation of the CR report and for the responsibility to anyone other than information and statements contained Vodafone UK for our work, for this Engagement assurance standards within it. They are responsible for statement, or for the conclusions • We conducted our work in accordance determining Vodafone UK’s objectives we have formed. with the International Standard on in respect of CR performance and for Assurance Engagements 3000 (ISAE establishing and maintaining appropriate Deloitte & Touche LLP 3000) issued by the International performance management and internal London, United Kingdom Auditing and Assurance Standards Board control systems from which the reported 21 September 2006 (IAASB) for carrying out assurance information is derived. engagements on non-financial information. • This is a limited assurance engagement, which is designed to give a similar level of assurance to that obtained in a review of interim financial information.

* The different levels of assurance engagement are defined in the International Standard on Assurance Engagements 3000 (ISAE 3000) issued by the International Auditing and Assurance Standards Board. Reasonable assurance is similar to the audit of financial statements; limited assurance is similar to the review of a six-monthly interim financial report. 28 Performance and data summary This table summarises our key performance data. The following symbol (◊) indicates performance data reviewed by Deloitte as part of their CR assurance work; see page 28.

2005 2004 2003 2005 2004 2003 /06 /05 /04 /06 /05 /04

Financial Supply chain Revenue (£ million) 5,048 5,065 4,744 Expenditure with suppliers (£ million) 1,900 1,200 – Adjusted operating profit (£ million) 698 779 1,039 Detailed supplier assessments 6 3– Number of customers (million) 16.3 15.5 14.1 Procurement employees completing online CR training 100% ––

Content standards Handset recycling Complaints about content on Vodafone live! 2 ––Handsets sold (million) 6.57 –– ◊ Handsets returned by customers (thousands) 203.4 141 163.5 ◊ Processing of handsets, batteries, accessories reused (tonnes) 28.6 3719 Responsible marketing ◊ Processing of handsets, batteries, accessories recycled (tonnes) 36.5 93 72 Complaints against Vodafone advertising upheld by 1 3–Number of top 50 corporate customers participating in Fonebak 23 7 – the Advertising Standards Authority

Employees Socially significant products Number of employees (000) 11.63 11 9.5 Customers using Speaking Phone 1,335 1,127 709 Rating against the Hay Employee Engagement Index (%) 71.4 68 – Women employees (%) 45 43 44 Network rollout, RF and health Women in management (%) 30 26 26 Number of base stations 11,352 9,837* – Employees from an ethnic minority (estimated %) 9 9– Shared sites (%) 30 20 – ◊ Accident Incidence rate per 1,000 employees 1.42 1.72 1.8 ◊ Enforcement notices 4 25 – Employees working flexibly, part-time, or from home (%) 25 23 20 Training spend (£ million) 5 7 – Employees with access to a training academy (%) 50 –– Environment Redundancies 640 –– ◊ Energy use – gas and electricity (GWh) 439 456 318 Vacancies filled internally (%) 70 – – ◊ CO2 emissions from our offices, stores and network (000 tonnes) 75.4 190.7 137.7 ◊ CO2 emissions from business travel by air and car (000 tonnes) 11.5 12.03 17.1 ◊ Employees at our offices in Newbury that drove to work on Social investment their own (%) 60 60 63 ◊ Total charitable contributions (£ million) 7.82 7.5 – ◊ Network waste generated (tonnes) 312 436.6 1,011 ◊ Total employee fundraising (£ million) 1.2 1.4 – ◊ Network waste reused or recycled (%) 97 97 – ◊ Vodafone UK Foundation matched funding (£ million) 0.84 –– ◊ Office waste generated from our Newbury and Total employee payroll giving (£ million) 0.23 –– Theale offices (tonnes) 714 688 – Employee volunteering (hours) 1,777 – – ◊ Office waste recycled from our Newbury and Theale offices (%) 57 40 25 ◊ Environmental prosecutions 0 0– ◊ Environmental fines 0 2 – – data not available

* In our last report we incorrectly stated that in March 2005 we had 11,500 base stations. We improved our data collection systems this year and have restated our data for 2004/05.

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